The “discounts” that current stock prices reflect are substantial – and represent a spectacular global investing opportunity.
As these uncertainties are resolved, the market will resume its climb, propelled by global synchronic growth and strong corporate earnings. Indeed, if these risks do not materialize into greater problems, prices should run up very strongly, as I soon expect.
As for now, the market is massively oversold – and rife with opportunity. Let’s dismantle this Wall of Worry, brick by brick…
Inflation Is A Trailing Indicator
As Fed Chairman Bernanke recently stated to Congress, since the U.S. economy is showing unequivocal signs of cooling off and inflationary expectations remain contained, the slowdown will bring core inflation down to the 1%-2% range that the Fed is comfortable with. (The slowdown is already underway, thanks to higher interest rates – from 1% to 5.25%.)
In the meantime, the Fed can refrain from increasing interest rates further (since monetary tightening works with lags), and it can monitor the situation to ensure that inflationary expectations remain anchored.
The Fear of Excessive Fed Tightening
We tasted a prelude of what happens in the markets when this fear subsides. We enjoyed a sharp rally when Bernanke testified in front of Congress his view of a U.S. economic non-inflationary soft landing. The Dow raced 212 points higher, for a one-day 2% gain. The iShares MSCI Emerging Market Index (AMEX: EEM) climbed a quick 6%.
Bernanke’s views are very similar to my own: The U.S. economy will slow down to trend growth of around 3%; inflation will drop to the comfort zone as a result; and the housing market will cool off significantly, but will not blow up.
This scenario is not only the most probable, but also the most desirable, since the economy’s risk of a recession is quite considerable, now that the consumer is overleveraged. Therefore, I believe that the Fed will go to great efforts to ensure that the U.S.

However, if cryptocurrencies are considered money in Russia, according to the law on foreign exchange operations, a transaction in BTC would not be possible since the only currency permitted in the sale of Russian real estate is the Russian ruble.
The legal section of the Kalinka Group is currently exploring whether the sale of a property for cryptocurrencies is lawful, according to the laws of Russia.

The Russian real estate firm Kalinka Group has announced that once of its clients is selling his luxurious house for bitcoins. The 4200 square foot country mansion is situated in the village of Nikolino, located in a fashionable neighborhood off the Rublevo-Upenskoe highway. According to the Kalinka Group, this is the first time in the history of the Russian real estate market that a client has offered to sell a property for cryptocurrencies.

Published at Tue, 22 Aug 2017 22:01:29 +0000

“The sale of the house in Nikolino will probably become a precedent in the legal clinic and real estate market. We [will] carefully study the world experience of conducting such transactions and understand that cryptocurrencies should be described at the legislative level in the shortest possible time because this innovative method of settlement is already able to impact the money turnover in business,” Rumyantseva said.

She pointed out that Russian law has not yet defined the principles for working with bitcoins, and thus far there isn’t any legal definition of the cryptocurrency. Also, as there isn’t any regulatory or legal framework governing the sale, the agency’s service fees will still be paid in the national currency, rather than in bitcoin.

Kalinka Group recognized that volatility is another issue to consider when property sales are listed and transacted in cryptocurrencies. The real estate company confessed that bitcoin is a lot more volatile in comparison to other currencies, thus, exchanging the payment into rubles can “significantly change the value of the object.”
The real estate firm mentioned China and Switzerland as examples of countries that consider bitcoin to be a tangible asset, which means a transaction is possible under the “barter agreement.”
“Such transactions are still a novelty, even for world real estate markets,” Ekaterina Rumyantseva, the chairman of the board of Kalinka Group, said in a statement. “We are pleased to be pioneers and open new frontiers in business.”

Kalinka Group added that since bitcoin is volatile, the specific value of the designer-furnished mansion – that has an open-air jacuzzi and a movie theater along with many other luxurious features – will have to be determined at the moment of the sale. At the time of the announcement, the house was listed for 3000 BTC.